In a report released today, Rufus Hone from BMO Capital maintained a Buy rating on Toast Inc (TOST – Research Report), with a price target of $48.00.
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Rufus Hone has given his Buy rating due to a combination of factors including Toast Inc.’s strong execution and optimistic future guidance. Toast Inc. exhibited better-than-expected performance in the fourth quarter, with notable improvements in recurring gross profit growth, location metrics, and software as a service average revenue per user (SaaS ARPU). Additionally, the company’s adjusted EBITDA also surpassed expectations, reflecting enhanced operating efficiencies.
Moreover, Toast Inc.’s initial guidance for 2025, although conservative, suggests potential upside, especially with the company’s strategic investments in sales and marketing as well as research and development. The expansion into new markets and recent significant client wins, such as Hilton Hotels, further bolster Rufus Hone’s confidence in the company’s growth prospects. The international momentum, coupled with the favorable economic conditions in the food and beverage retail sector, underscores the company’s position as a long-term leader in the U.S. restaurant technology and payments market.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $50.00 price target.